The IBFA/IBSA Scheme for International Company Benchmarking“
Transcript of The IBFA/IBSA Scheme for International Company Benchmarking“
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
„The IBFA/IBSA Scheme forInternational CompanyBenchmarking“
Steinbeis-Europa-Zentrum,Friday, 7th June 2002
IBFA/IBSA Company Benchmarking
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
Export-AkademieBaden-Württemberg
POSTGRADUATE STUDIES
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Further education programmes formanagers and junior managers fromGermany and other countries
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industry (SEFEX)• International
Management Institut (IMI)
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking
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© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
Content1. Benchmarking2. International Best Factory Awards (IBFA) and International Best Service Awards (IBSA)3. Effect of applying results of participation in IBFA/IBSA in the enterprise
IBFA/IBSA Company Benchmarking
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking
The Learning Company is characterisedby 7 points:
1. System-thinking2. Preparation of the long-term planning in the Team3. Common development of the company culture
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Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking
Continued: The Learning Company
4. Professional teamwork5. Constant learning6. Learning from the customer, competitor, supplier and friendly companies7. The people in the independent company
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking
Definition of Benchmarking:
„...the continuous search for solutions, which a focus on the best methods and procedures of the industry, the best practises, and lead the company to top performance.“
R.C.Camp, 1994, S.13
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Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking
Continued: Definition Benchmarking
„Best method and procedure of the industry“„Continuous“„Lead to top performance“„Search for solutions“
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
The Idea of BenchmarkingThe Idea of Benchmarking
Benchmarking is NOT a simple comparison of ones owncompany values from the balance sheet (profit and losscalculation, cost calculation) with those of competitors or withany consultant's ideal values – especially not if this is done onlyonce.
Important:� Comparison of all process values from the whole industry.� Continuous comparison of values.� Seeking solutions to become the best.
Objective: The Learning Company.
IBFA/IBSA Company Benchmarking
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking
Steps in the benchmarking-process1. Establish what we should be looking for in the benchmarking
process2. Find comparable companies3. Determine the method of data collection4. Check for any deficiencies in performance5. Project future performance6. Communicate results and gain acceptance7. Fix the objectives in the processes8. Plans activities9. Initiate activities and monitor development10.Motivate all who are involved.
International Best Factory Awards(IBFA) 2001
International Best Service Awards(IBSA) 2001
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001International Best Service Awards (IBSA) 2001
Metall/Kunststoff/Zulieferer45%
Maschinen-/Fahrzeugbau/Elektrotechnik/Elektronik34%
Dienstleistung21%
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001
The processes are quantified in 234 Single Criteria:
Plant Profile
Structure of Costs
Stock Profil
Employee Profile
Product Innovation
Management Information
Planned Changes/investments in the Production
General Characteristics of the Plant
Main Criteria Single criteria
• Cost per squaremeter area• Output supplied off the shelf • Active used data
• ....
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001
V a lu e Ad d e d p er P ro d u ctio n E m p lo yee
0
200
400
600
800
100 0
0 .0 0 .1 0 .2 0 .3 0 .4 0 .5 0 .6 0 .7 0 .8 0 .9 1 .0
P erfo rm ance Ind e x
Valu
e Ad
ded
per P
rodu
ktio
n
A ll R esponda n ts in S ec torC o m pan y P os ition in M a tr ixP e rfo rm an ce In dex M e d ia n L in ie (H o rizon ta l)W ertsch öp fun g M ed ian L in ie (V e rtika l)
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001
Table: 2 Planned procurement lead time for the main bought out item / material
Units: Days Responses: 57 Non-responses: 1
Decile LeadTime Lead Time by Plant Percentile
Longer1 78 0.00 7840%
2 58 0.00 5760%
3 41 0.00 4120%
4 30 0.00 3000%
5 21 0.00 2100%
6 20 0.00 2000%
7 14 0.00 1440%
8 6 6.20 620%
9 5 0.00 500%
10 0 0.00 10%
ShorterCase Data: 10 Mean Average: 35 Median Average: 21
78
58
41
3021 20
146 5
00
10
20
30
40
50
60
70
80
1 2 3 4 5 6 7 8 9 10
Lead
Tim
e (D
ays)
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001
Table: 13Change of the stock value within the past 2 years
Units: Quantity Responses: 57 Non-responses: 1
StockChange
No of Plants Number of Plants by Stock Change
Worse>+50% 2 0.00 200%
+25%zu+50% 10 0.00 1000%
+10%zu+24% 15 15.00 1500%
+01%zu+09% 9 0.00 900%
Constant 6 0.00 600%
-01%zu-09% 7 0.00 700%
-10%zu-24% 5 0.00 500%
-25%zu-50% 2 0.00 200%
>-50% 1 0.00 100%
0.00
BetterCase Data: +10%zu+24% Category Analysis
2
10
15
9
67
5
21
02468
10121416
>+50% +25%zu+50%
+10%zu+24%
+01%zu+09%
Const. -01%zu-09%
-10%zu-24%
-25%zu-50%
>-50%
Num
ber o
f Pla
nts
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001
Recommendations:In Comparison with the TOP 25% do you have:
• A longer time procure for the most important parts. Find a possibility to accelerate the procurement• A high increase of the stock. Analyse the reasons and try to reduce the stock
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001UK and Germany
Table: 15 Employees: average rate of absenteeism
Units: Percentage Responses: 69 Non-Responses: 0
Decile AbsenteeismRate Absenteeism Rate by Plant Percentile
Worse1st 6.8% 0.07 0.00
2nd 5.8% 0.06 0.00
3rd 5.0% 0.05 0.00
4th 4.7% 0.05 0.00
5th 4.0% 0.04 0.00
6th 3.5% 0.03 0.00
7th 3.0% 0.03 0.00
8th 2.5% 0.02 0.00
9th 2.0% 0.02 0.00
10th 0.0% 0.00 0.00
BetterMean Average: 4.3% Median Average: 4.0%
6.8%
5.8%5.0% 4.7%
4.0%3.5%
3.0%2.5%
2.0%
0.0%0%
1%
2%
3%
4%
5%
6%
7%
8%
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th
Abse
ntee
ism
Rat
e (%
)
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards 2001UK and Germany
RecommendationTable 15:The percentage of sick leave taken by the employeesthroughout the year should remain as low as possible.Possible measures for reducing illness/injury:- Analysis of causes of accidents and additional training forthe employees- Steps in the production process showing a highaccident/injury rate can be machine automated- Motivation through visualisation of performance- Transfer of responsibility to the employees (for example,through group projects)
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001International Best Service Awards (IBSA) 2001
Benefit for the Company:1. Clear definition of the objective and the course for the benchmarking-process2. The questionnaire provides a number of indicators
to control the real processes3. Own strength and weakness in comparison to the participants4. Realistic estimate of own position
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001International Best Service Awards (IBSA) 2001
Continued: Benefit...
5. Ideas to improve the processes6. Start with activities with own project-teams, the EA, consultants,...7. To get a benchmarking-partner direct or with the benchmarking-bourse8. How do other companies ensure future
improvement9. PR and advertising, motivation of the employees
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Factory Awards (IBFA) 2001International Best Service Awards (IBSA) 2001
Choose the winner (IBFA und IBSA)Four steps:1. Frequency on the places 1 to 5 over 53 resp. 23 important processes2. Very good position in the productivity-performance- matrix (turnover per head-performance-matrix)3. Visits of the audit-teams to the 3 bests per category4. Choose the Winner in every category and the total winner esp. with qualitative criteria by the audit- teams
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :International Best Service Award (IBSA) 2000The presentation of the award: Dr. Walter Döring
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
International Best Factory AwardsInternational Best Service AwardsWinners 2001
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
IBFA/IBSA Company Benchmarking :IBFA General Comparison D / UK / IAverage and Top 25%: 1998
Performance MeaasureLeistungsdaten
Number of stock turnsLagerumschlagshäufigkeit
AbsenteesimFehlzeit
Trainings (new starters)Weiterbildungstage
TrainingsWeiterbildungstage
Delivery performanceLiefergenauigkeit
UnitsEinheit
#
%
DaysTage
DaysTage
MonthMonate
D
7,0(13,9)
5,0(2,3)
12,4(30,0)
4,6(10,1)
89,8(99,0)
UK
9,7(10,8)
3,3(2,1)
13,6(21,7)
4,7(5)
86,3(97,5)
I
8,3(9,4)
4,7(2,5)
18,9(20,0)
4,0(5,0)
84,9(96,0)
© Export-Akademie Baden-Württemberg
Institute for Simulation and BenchmarkingDirector: Prof. Dr. Rolf Pfeiffer
Performance MeasureLeistungsdaten
Problem solving teamsProblemlösungsgruppen
First time pass...Fehlerquote nach...
Innovation rate(last 3 Years)
Time to marketProduktinnovationszeit
UnitsEinheit
%
%
%
MonthMonate
D
34,5(78,8)
97,2(99,8)
5,7(17,1)
15,5(4,7)
IBFA/IBSA Company Benchmarking :IBFA General Comparison D / UK / I (2)Average and Top 25% :1998
UK
40,1(70)
92,8(98,4)
1,7(8,3)
15(7,5)
I
---
94,5(99,4)
1,0(2,0)
13,0(12,0)